What is meant by inflation targeting? Does the Fed engage in inflation targeting?
What will be an ideal response?
Under inflation targeting a central bank commits to conduct policy to satisfy a publicly announced inflation target within a given time frame. In 2012, the Fed adopted a inflation target.
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When changes in the supply of money are implemented, it makes interest rates change in the _____ direction as the shift in the money supply curve and makes aggregate demand change in the _____ direction as the shift in the money supply curve. a. Same; same
b. Same; opposite. c. opposite; same. d. Opposite; opposite.
A species of snakes became extinct due to pollution in a river where the snakes once lived. This is an example of
a. a market failure caused by an externality. b. a market failure caused by market power. c. a market failure caused by equality. d. There is no market failure in this case.
One of the functions of an institution like the Federal Reserve System is to ______.
a. make loans and provide banking services to individuals b. regulate the buying and selling of stocks and bonds c. act as the central government’s primary bank d. manage and review taxpayers’ annual returns
If people are willing this year to buy more of a particular good at each and every price than they were willing to buy last year, the
What will be an ideal response?